Unlike the EPPC model, the EPCM contractor is not directly involved in the construction and construction of the project, but is responsible, on behalf of the owner or client, for the detailed planning and overall management of the project. While an EPPC contract takes the form of a design and work contract, the EPCM model can be considered a professional service contract. An enterprise agreement with the participants in the joint venture (JV) that gives the operating company the right to build and operate the oil and gas facility. As a general rule, each participant in the joint venture will sell their own share of the product. Traditionally, the enterprise agreement is a joint enterprise agreement of the JV participants, in which one of the participants operates the facility. This structure has a significant advantage because it means that an organization is responsible for the implementation of projects, relationships with government, clients and contractors. Large operations and maintenance contracts (D-M agreements) are unusual in the oil and gas industry. Industry participants are generally active with the management of these facilities. However, the components of the operations are generally assigned. The construction contract is just one document among many relating to an oil and gas project. It is important that the proponent or participants in the joint venture of the project work and derive revenue from contracts other than the construction contract.
Therefore, the work contract must, in practice, be adapted to meet the requirements of the other project documents. It is therefore essential to properly manage the interfaces between the different types of agreements. The offtake agreements govern the sale of the proceeds of the project. For gas projects and hydrocarbon derivatives, these agreements are essential to the development process. The financiers will not lend the funds and the boards will not approve the project if there are no customers locked up to take the product. The effect of the acquisition agreement is on the practical conclusion. If there are acquisition or compensation agreements, it is essential that the project is ready to deliver the product from the date the acquisition contract is formed or that penalties are imposed. The reason EPC contracts are popular is because of its equipment and structure so that project proponents and contractors benefit from this agreement. It allows the project owner to manage the risks more effectively and the contractors to assign the work they are trying to do and to specialize in it. Under joint EPC contracts, the contractor has full control over the design, acquisition and construction of the project from its inception to completion.